Enforcing Cannabis Contracts: The Benefits of Alternative Dispute Resolution Processes
June 22, 2022
The cannabis industry continues to grow rapidly, both in the United States and globally. However, cannabis companies face issues when entering into contracts that they hope to enforce. Because the federal Controlled Substances Act prohibits cannabis sales as a matter of federal law, many courts will not enforce a contract between cannabis companies, even if state law permits the legal sale of cannabis. Therefore, cannabis investors, businesses, and those who do business with them need a tool that makes their contracts enforceable.
This program discussed the benefits of using alternative dispute resolution (ADR) methods (including arbitration and mediation) in cannabis contracts, thus bypassing the courts. Benefits include greater enforceability plus faster speed to a decision, decision-makers with industry expertise, privacy and confidentiality, and the parties’ ability to create a process to fit specific needs and timelines. Participants learned how to include an ADR clause in their contracts, so they can take advantage of these benefits.
Mia Levi, Vice President of Global Development for Dispute Resolution at CPR
Robert Copple, JD PhD CIPP, Arbitrator, Mediator, Investigator, Litigation Management/Strategy, Organization Leader, Author at Copple & Associates, P.C.